How long are contracts valid for?
Typically, derivative contracts are valid for three months.
Can I hold onto these contracts for as long as I want?
Derivative contracts are time-bound contracts which are valid only for a certain period of time. These contracts expire on a weekly/monthly basis. Equity derivative contracts, currency derivative contracts and commodity currency contracts have their ...
Can I short sell futures contracts without having the underlying shares in my Demat account?
Yes. Since all derivative positions are settled in cash, the investor can short sell futures contracts without having the underlying shares in his/her Demat account.
Can I pledge my Fixed Deposit to trade in F&O contracts?
Currently, Fixed deposits are not available for pledging to trade in F&O due to operational and reconciliation constraints. However, we might come up with such a facility in the future. You can check out the list of approved securities and Mutual ...
How can I identify when my contract expires?
Typically, derivative contracts which expire in the current month of trading are called ‘Near’ month contracts, those which expire next month are called ‘Next’ month contracts and those which expire the month after next are called ‘Far’ month ...
What is a Derivative?
A derivative is a mutual contract between two parties which derivatives its value from an underlying asset. These contracts are time-bound contracts whose value changes in accordance with the value of the underlying asset.